Under Revenue Procedure 2021-38, issued Sept. 1, the interim amendment deadline is no longer determined with reference to Section 401(b), and, accordingly, an employer’s tax-filing deadline is no longer relevant in determining the date by which an interim amendment must be adopted, the IRS explains.
For disqualifying provisions that are effective after Dec. 31, 2020, interim amendments must be adopted by the end of the second calendar year following the calendar year in which the change in qualification requirements is effective with respect to the plan. For disqualifying provisions that were effective on or before Dec. 31, 2020, an interim amendment continues to be timely if it’s adopted by the end of the remedial amendment period described in section 2.07 of Rev. Proc. 2016-37.
The IRS advises that this new deadline also applies to adopters of Section 401(a) pre-approved plans that are maintained by more than one employer or by tax-exempt employers. The interim amendment deadline that applies to governmental employers is also modified.
The IRS notes that this change ensures that the deadline for amending Section 401(a) pre-approved plans is consistent with the deadline for Section 403(b) pre-approved plans outlined in Rev. Proc. 2021-37, which was also issued on Sept. 1.
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